Are bonds a bad investment right now?

I have several different types, from munis to junk, in funds and they all are going down, down, down. Do I ditch them and move back to stocks, cash?

The 10yr Bond rate was expected to fall to under or near 4.00%. Of course, just a couple of weeks ago that didn't seem possible. The Federal Reserve was also supposed to cut rates on money too. Last weeks volatility probably put those plans on hold for awhile I guess. I really don't know what the sub-prime market is going to do to bonds, but if today's bull-trend is any indication, I'd get back into stocks ----- specifically LMT on the Durable goods orders, the quarter, and the analysts upgrades.
Cash, on the other hand, may fall flat with an unexpected unwinding of the Yen carry trade recently. Only Sterling and the Kiwi show fundamental strength (low supply).

Your bonds are down because interest rates are up. If you think rates are going higher, expect the bonds to go lower. If interest rates go down, however, your bonds will go up. My guess is that rates are about at their top, short term, and hence I'd hang on for a bit.

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